Reference no: EM13146914
Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2009, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000 and $220,000 for 2009, 2010, and 2011 respectively. Parker sold the land it purchased from Stark in 2009 for $92,000 in 2011.
Which of the following will be included in a consolidation entry for 2010?
• Debit retained earnings for $5,000
• Credit retained earnings for $5,000
• Debit investment in subsidiary for $5,000
• Credit investment in subsidiary for $5,000
• Credit land for $5,000
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Problem related to consolidation entry
: The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000 and $220,000 for 2009, 2010, and 2011 respectively. Parker sold the land it purchased from Stark in 2009 for $92,000 in 2011. Which of the following will be in..
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